Detour Gold Corporation

Detour Gold Corporation

February 03, 2011 12:31 ET

Detour Gold Announces US$105 Million Financing for Mining Fleet

TORONTO, ONTARIO--(Marketwire - Feb. 3, 2011) - Detour Gold Corporation (TSX:DGC) ("Detour Gold" or the "Company") is pleased to announce that it has executed a term sheet with Caterpillar Financial ("Cat Financial"), pursuant to which Cat Financial has agreed to underwrite up to US$105 million in mobile fleet equipment financing to fund the Company's previously announced acquisition of Cat mining equipment supplied by Toromont Industries Limited (a Caterpillar dealer in Ontario), for the Detour Lake gold project in northeastern Ontario (the "Equipment Financing Facility").

The Equipment Financing Facility will be utilized towards the acquisition cost of 23 Cat 795F - 322-tonne haul trucks and ancillary equipment (the "Mobile Fleet") being supplied by Toromont (the "Lease"). Deliveries of the Mobile Fleet are expected to commence arriving at site in mid-2011 and be completed in early 2013. The term of the Equipment Financing Facility will be 5 years and will be secured by the Mobile Fleet. Title to the Mobile Fleet will transfer to the Company at the completion of the Lease.

Closing of the transaction is anticipated to occur in the first quarter of 2011 and is subject to customary conditions including completion of final documentation, satisfactory completion of conditions precedent and receipt of final internal credit approval. 

"We have crossed another important milestone in the development of the Detour Lake project. Detour Gold is delighted to have Cat Financial endorse the future Detour Lake mining operation and we look forward to completion of the facility," said Gerald Panneton, President and CEO of Detour Gold.

About Detour Gold

Detour Gold is a Canadian gold exploration and development company whose primary focus is to advance the development of its flagship Detour Lake gold project located in northeastern Ontario towards production. Detour Gold's shares trade on the Toronto Stock Exchange under the trading symbol DGC.

Forward-Looking Information

This press release contains certain forward-looking information as defined in applicable securities laws (referred to herein as "forward-looking statements"). Specifically, this press release contains forward-looking statements regarding the closing of the transaction and the delivery of the mobile fleet. Forward-looking statements involve known and unknown risks, uncertainties and other factors which are beyond Detour Gold's ability to predict or control and may cause actual results, performance or achievements to be materially different from any of future results, performance or achievements expressed or implied by forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, the satisfaction of the closing conditions of the Transaction, gold price volatility, changes in debt and equity markets, the uncertainties involved in interpreting geological data, increases in costs, environmental compliance and changes in environmental legislation and regulation, interest rate and exchange rate fluctuations, general economic conditions and other risks involved in the gold exploration and development industry, as well as those risk factors discussed in the section entitled "Description of Business - Risk Factors" in Detour Gold's 2009 annual information form. Such forward-looking statements are also based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about the following: the satisfaction of the closing conditions of the Transaction, the availability of financing for exploration and development activities; the estimated timeline for the development of the Detour Lake gold project; the supply and demand for, and the level and volatility of the price of, gold; the accuracy of reserve and resource estimates and the assumptions on which the reserve and resource estimates are based; the receipt of necessary permits; market competition; ongoing relations with employees and impacted communities; and general business and economic conditions. Accordingly, readers should not place undue reliance on forward-looking statements. Detour Gold undertakes no obligation to update publicly or otherwise revise any forward-looking statements contained herein whether as a result of new information or future events or otherwise, except as may be required by law.

Contact Information

  • Detour Gold Corporation
    Gerald Panneton
    President and CEO
    (416) 304.0800
    Detour Gold Corporation
    Laurie Gaborit
    Director Investor Relations
    (416) 304.0581
    Detour Gold Corporation
    Royal Bank Plaza, South Tower
    200 Bay Street, Suite 2200
    Toronto, Ontario M5J 2J1